Becoming self-employed - need advice

grad101

Hello all,

Sorry if this question is a little basic but I couldn't find clear and up to date information online that is relevant to me. I currently have a full time job but would like to supplement this with income from tutoring via agencies - but the tutoring would be classified as self-employed.

So I know I have to tell HMRC this by 3 months after starting, but can anyone give me advice on how best to pay or keep records of NI and other tax contributions. Since I already work it should be fairly straightforward as this job will be taxed at 0T, although I'm not clear on how much NI to pay and how this is worked out? How regularly should I submit these details - can I pay every month or do I still need to complete a tax return at the end of the year? As a tutor I also will have minimal expenses, so my records will simply be income (and this will also be my profit).

Thanks in advance.

Savvy_Sue

Tax return at the end of the year, NI is now included in that so set aside in a savings account what you're going to have to pay - also note that there is a 'payment on account' to be made covering half your anticipated tax liability for year two, due soon after the end of year one.

Your expenses are worth considering - travel? materials?

Dazed_and_confused

You can't have it both ways, either it's self employed with no tax deducted and you pay via self assessment or its employed and tax code 0T could be applied (would normally be BR but 0T and BR result in the same tax deductions most of the time).

Savvy_Sue

Must admit I read it that the OP expects to be self-employed but knows that they've got no spare personal allowance, therefore it will all be taxable. Hence my response.